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Looking beyond payment processing rates
Buying a car is an experience we often avoid because the selection is overwhelming and comparing cars is difficult, considering there are dozens of makes and models to choose from, and each with multiple options and upgrades available. Then there is the price. How can you possibly compare one to the other when none are really the same?
Payment processing can be a similar buying experience because comparing services across different companies involve comparing non-similar features. Here are five issues to consider when looking for a new provider:
- It is hard to figure out what you are paying. Payment Processing Rates change based on the card the consumer uses, the average transaction, and monthly volume. Rates are different based on whether the customer uses a debit or credit card, and whether the card offers rewards. Issuers, such as Visa or American Express experience different rate structures. You have little or no control over most pricing factors.
- You can’t compare your current bill to a quote because each month the transaction volume, cards used, and average transaction amounts change in any given month, leaving you to guess at what fees to expect. The billing process also makes it difficult to evaluate existing charges for accuracy.
- How do you get your payment processer to talk to your payment site? Do you have to buy a new pay site? Most processing services do not specialize in site management leaving those costs to the client, or charging additional fees for the added service. Just the cost of the interfaces can be a show stopper.
- Is it compliant? Can the processing center handle all the debt collection compliance requirements? The CFPB is increasing the pressure on companies with regard to compliance, making it essential to have a system that checks all the compliance boxes. Collection agencies not only have the typical fraud concerns but also must authenticate the customer and send appropriate documentation within REG E guidelines. Can your processor handle these requirements or will this require another vendor?
- Is it easy to use? An integrated service that gives both you and the customer a seamless experience will increase collections and ensure compliance. We all know the ease of use for the consumer will increase the ROI of the transaction so does your system make it ease to not only pay but meet requirements like REG E?
Focus on ROI, not payment processing rates
Instead, we suggest you look at the ROI, not the cost per transactions when selecting a payment processor. PDC Flow includes a payment site, REG E solutions, and more, free with their processing system. It’s the total cost to get that payment that needs to be calculated in the KPI.
Your payment processes should include an integrated pay site, an integrated REG E solutions, and efficient document transfers for successful payment collections. When integrating these features into one product, you end up with a very consumer-friendly system that is both compliant and easy to use.